Continental Gold Drills and Samples High-Grade Gold in the Yaragua System at Buritica, Colombia

TORONTO, ONTARIO--(Marketwired - Dec 19, 2013) - Continental Gold Limited (TSX:CNL)(OTCQX:CGOOF) ("Continental" or the "Company") is pleased to announce results for 17 diamond drill-holes and underground sampling from the Yaraguá and San Agustin vein systems as part of the Company's ongoing exploration program at the Buriticá project in Antioquia, Colombia. The Company's 2013 drilling program has been completed and drilling will continue in 2014 with the goal of delivering robust mineral resource growth and upgrading inferred resources into the measured and indicated categories under National Instrument 43-101 ("NI 43-101") guidelines.

Highlights (referenced in Figures 1 and 2)

• Drill-holes were successful in extending the Yaraguá and San Agustin systems, whereas drilling and underground sampling infilled vein families in western Yaraguá.
• Four drill-holes intersected vein sets up to 200 metres to the west of the current NI 43-101 block model for the Yaraguá system. These intersections were over a large range of elevations and represent extensions of the Yaraguá southern, central and northern vein families, all of which continue to remain open along strike to the west and to depth with significant intercepts including:
  • 0.5 metres @ 119 g/t gold and 166 g/t silver (BUSY353; elevation of 897 metres);
  • 3.5 metres @ 10.8 g/t gold and 5 g/t silver (BUSY359; elevation of 1,286 metres);
  • 1.5 metres @ 33.8 g/t gold and 134 g/t silver (BUSY359; elevation of 1,130 metres);
  • 0.55 metres @ 14.5 g/t gold and 54 g/t silver (BUUY195; elevation of 1,086 metres);
  • 1.62 metres @ 1.1 g/t gold and 804 g/t silver (BUUY195; elevation of 1,257 metres);
  • 0.8 metres @ 44.6 g/t gold and 18 g/t silver (BUUY203; elevation of 1,306 metres);
  • 0.9 metres @ 76 g/t gold and 22 g/t silver (BUUY203; elevation of 1,294 metres);
  • 1.5 metres @ 24.8 g/t gold and 21 g/t silver (BUUY203; elevation of 1,288 metres); and
  • 0.5 metres @ 20.2 g/t gold and 30 g/t silver (BUUY203; elevation of 1,261 metres).
• Two drill-holes intersected high-grade veins in the San Agustin area to the north of the Yaraguá resource envelope. Highlighted intercepts include:
  • 1.4 metres @ 23.9 g/t gold and 301 g/t silver (BUSY353; elevation of 1,447 metres);
  • 0.6 metres @ 15.4 g/t gold and 2 g/t silver (BUSY353; elevation of 1,349 metres); and
  • 2.0 metres @ 14 g/t gold and 48 g/t silver (BUUY187; elevation of 1,514 metres).
    These vein sets are open in all directions and will be subject to follow up drilling in 2014.
• Channel sampling of new developments above Level 0NV in the Yaraguá mine extended very high grades in the San Antonio vein family to higher elevations (1,560 metres), with significant intervals including:
  • 56.3 g/t gold and 112 g/t silver across 1.34 metres along 32 metres.
• Processing of Level 0 development material through the Yaraguá mill is not yet complete, but recovered grades to date compare favorably with those from channel sampling and exceed the grades from the current Yaraguá mineral resource model.
• Elsewhere, in western Yaraguá, infill drilling continued to encounter vein grades and/or thicknesses that are better than expected from the current Yaraguá mineral resource block model. In the northern vein families, such intercepts include:
  • 2.3 metres @ 11.5 g/t gold and 21 g/t silver (BUUY198, NWSE; elevation of 1,504 metres);
  • 0.5 metres @ 37.4 g/t gold and 76 g/t silver (BUUY198, VNAD; elevation of 1,504 metres);
  • 1.7 metres @ 9.1 g/t gold and 11 g/t silver (BUUY188, VNAD; elevation of 1,505 metres);
  • 4.6 metres @ 13.5 g/t gold and 23 g/t silver (BUUY193, HWV; elevation of 1,506 metres);
  • 4.95 metres @ 11.2 g/t gold and 6 g/t silver, including 1.70 metres @ 28.8 g/t gold and 3 g/t silver (BUUY169, HWV; elevation of 1,407 metres);
  • 6.4 metres @ 10.8 g/t gold and 16 g/t silver, including 2.55 metres @ 21 g/t gold and 30 g/t silver (BUUY169, SOF; elevation of 1,425 metres);
  • 0.5 metres @ 106 g/t gold and 87 g/t silver (BUUY179, SOF; elevation of 1,427 metres); and
  • 0.5 metres @ 43.7 g/t gold and 102 g/t silver (BUUY166, SOF; elevation of 1,456 metres);
    and, in the central vein families:
  • 0.5 metres @ 37 g/t gold and 26 g/t silver (BUUY182, VNB; elevation of 1,506 metres);
  • 2.15 metres @ 26.6 g/t gold and 8 g/t silver (BUUY162, VNB; elevation of 1,497 metres);
  • 0.6 metres @ 25.9 g/t gold and 11 g/t silver (BUUY179, VNB; elevation of 1,498 metres);
  • 0.5 metres @ 26.3 g/t gold and 7 g/t silver (BUUY166, VNBC; elevation of 1,499 metres); and
  • 2.4 metres @ 16.4 g/t gold and 12 g/t silver (BUUY197, VNE; elevation of 1,507 metres);
    and, in the southern vein families:
  • 14.5 metres @ 9.5 g/t gold and 9 g/t silver, including 3.05 metres @ 11.1 g/t gold and 15 g/t silver plus 1.0 metres @ 68.3 g/t gold and 17 g/t silver (BUUY203, MU2; elevation of 1,332 metres);
  • 0.5 metres @ 18.9 g/t gold and 11 g/t silver (BUUY203, MU; elevation of 1,432 metres);
  • 5.05 metres @ 48.1 g/t gold and 79 g/t silver, including 1.15 metres @ 203.6 g/t gold and 323 g/t silver (BUUY162, MU; elevation of 1,404 metres); and
  • 2.5 metres @ 8.2 g/t gold and 3 g/t silver (BUUY195, MU; elevation of 1,427 metres).

"These drill results continue to demonstrate the growth potential at Yaraguá while satisfactorily upgrading the confidence level of the resources within the existing deposit," commented Ari Sussman, CEO. "Our updated resource estimate is scheduled for early in 2014 and the results in this release plus favourable assays due in early January will be incorporated into the next estimate."

Details

Continental's 100%-owned, 58,773-hectare project, Buriticá, contains several known areas of high-grade gold and silver mineralization, of base metal carbonate-style ("Stage I") variably overprinted by texturally and chemically distinctive high-grade ("Stage II") mineralization. The two most extensively explored of these areas (the Yaraguá and Veta Sur systems) are central to this land package. The Yaraguá system has been drill-outlined along 900 metres of strike and 1,300 vertical metres and partially sampled in underground developments. The Veta Sur system has been drill-outlined along 700 metres of strike and 1,300 vertical metres. Both systems are characterized by multiple, steeply-dipping veins and broader, more disseminated mineralization and both remain open at depth and along strike, at high grades. See "About Continental Gold" below for a précis of mineral resource estimates for the Buriticá project prepared in accordance with NI 43-101. This release documents the results of extension and infill drilling and underground sampling of the western Yaraguá system and, to the north of this, drilling in the San Agustin area. Significant new drill intercepts are listed below in Table I and are referenced in Figures 1 and 2.

Table I: Drilling Highlights

Four holes were drilled into western Yaraguá to test for extensions of the Yaraguá system. From 400 to 600 metres and from 1,000 metres down-hole, respectively, BUSY359 and BUSY353 (Table I) intersected multiple veins, with high-grade intercepts including:

• 1.65 metres @ 14.6 g/t gold and 14 g/t silver (BUSY359, from 463.6 metres; elevation of 1,296 metres);
• 3.5 metres @ 10.8 g/t gold and 5 g/t silver (BUSY359, from 472.55 metres; elevation of 1,286 metres);
• 1.3 metres @ 13.1 g/t gold and 16 g/t silver (BUSY359, from 593.7 metres; elevation of 1,180 metres); and
• 0.57 metres @ 11.7 g/t gold and 135 g/t silver (BUSY353, from 1,062 metres; elevation of 786 metres).

These intersections represent extensions of the Murcielagos and Murcielagos South vein families, more than 100 metres to the west of the current Yaraguá mineral resource envelope.

BUUY203 also extended high-grades in the Murcielagos vein family on the western margin of this envelope, with broad intercepts including:

• 5.3 metres @ 8.2 g/t gold and 5 g/t silver including 0.8 metres @ 44.6 g/t gold and 18 g/t silver (from 207.7 metres; elevation of 1,303 metres);
• 5.8 metres @ 13.9 g/t gold and 6 g/t silver including 0.9 metres @ 76 g/t gold and 22 g/t silver (from 216.0 metres; elevation of 1,294 metres); and
• 5.0 metres @ 9.1 g/t gold and 9 g/t silver including 1.5 metres @ 24.8 g/t gold and 21 g/t silver (from 223.5 metres; elevation of 1,287 metres).

BUSY359 (100 metres west of the resource envelope), BUUY195 (50 metres further east) and BUUY203 (another 30 metres to the east) all encountered extensions of central Yaraguá vein families, with high-grade intercepts including:

• 1.5 metres @ 33.8 g/t gold and 134 g/t silver (BUSY359, from 649.5 metres; elevation of 1,130 metres);
• 1.62 metres @ 1.1 g/t gold and 804 g/t silver (BUUY195, from 306.63 metres; elevation of 1,257 metres);
• 0.5 metres @ 20.2 g/t gold and 30 g/t silver (BUUY203, from 254.6 metres; elevation of 1,261 metres); and
• 2.0 metres @ 8.3 g/t gold and 9 g/t silver (BUUY203, from 333 metres, elevation of 1,185 metres).

Western extensions of the northern Yaraguá vein families were intersected in BUSY359, BUUY195 (up to 150 metres west of the mineral resource envelope) and in BUSY353 (deeper than the mineral resource envelope), including:

• 0.7 metres @ 9.7 g/t gold and 9 g/t silver (BUSY359, from 843.0 metres; elevation of 959 metres).
• 0.55 metres @ 14.5 g/t gold and 54 g/t silver (BUUY195, from 531.7 metres; elevation of 1,086 metres); and
• 0.57 metres @ 11.7 g/t gold and 135 g/t silver (BUSY353, from 1,062 metres; elevation of 786 metres).

The Yaraguá vein families remain open to the west and to depth.

To the north of Yaraguá, in the San Agustin area, BUSY353 and BUUY187 intersected multiple auriferous veins, high-grade intercepts including:

• 1.4 metres @ 23.9 g/t gold and 301 g/t silver (BUSY353, from 235.6 metres; elevation of 1,447 metres);
• 0.6 metres @ 15.4 g/t gold and 2 g/t silver (BUSY353, from 355.2 metres; elevation of 1,349 metres);
• 0.5 metres @ 119 g/t gold and 166 g/t silver (BUSY353, from 912.3 metres; elevation of 897 metres); and
• 2.0 metres @ 14 g/t gold and 48 g/t silver, including 1.0 metres @ 24.2 g/t gold and 81 g/t silver (BUUY187, from 208.0 metres; elevation of 1,514 metres).

These vein sets are open in all directions.

Channel sampling of new developments above Level 0NV (elevation of 1,560 metres) in the Yaraguá mine extended very high grades in the San Antonio vein family to higher elevations, with significant intervals including:

• 56.3 g/t gold, 112 g/t silver and 3.29% zinc across 1.34 metres along 32.0 metres; and
• 55.1 g/t gold, 118 g/t silver and 3.8% zinc across 1.58 metres along 8.0 metres.

Processing of Level 0 development material through the Yaraguá mill is not yet complete, but recovered grades to-date compare favorably with those from channel sampling and exceeds the grades from the current Yaraguá mineral resource model.

Elsewhere, drill intersections within the current western Yaraguá mineral resource envelope are generally consistent with grade X thicknesses of comparable areas of the mineral resource model. Some intercepts in each of the Yaraguá vein families were of significantly higher grades and/or apparent thicknesses, including, in the northern vein families:

• 2.3 metres @ 11.5 g/t gold and 21 g/t silver (BUUY198, NWSE; elevation of 1,504 metres);
• 0.5 metres @ 37.4 g/t gold and 76 g/t silver (BUUY198, VNAD; elevation of 1,504 metres);
• 1.7 metres @ 9.1 g/t gold and 11 g/t silver (BUUY188, VNAD; elevation of 1,505 metres);
• 4.6 metres @ 13.5 g/t gold and 23 g/t silver (BUUY193, HWV; elevation of 1,506 metres);
• 4.95 metres @ 11.2 g/t gold and 6 g/t silver, including 1.7 metres @ 28.8 g/t gold and 3 g/t silver (BUUY169, HWV; elevation of 1,407 metres);
• 6.4 metres @ 10.8 g/t gold and 16 g/t silver, including 2.55 metres @ 21 g/t gold and 30 g/t silver (BUUY169, SOF; elevation of 1,425 metres);
• 0.5 metres @ 106 g/t gold and 87 g/t silver (BUUY179, SOF; elevation of 1,427 metres); and
• 0.5 metres @ 43.7 g/t gold and 102 g/t silver (BUUY166, SOF; elevation of 1,456 metres);

and, in the central vein families:

• 0.5 metres @ 37 g/t gold and 26 g/t silver (BUUY182, VNB; elevation of 1,506 metres);
• 2.15 metres @ 26.6 g/t gold and 8 g/t silver (BUUY162, VNB; elevation of 1,497 metres);
• 0.6 metres @ 25.9 g/t gold and 11 g/t silver (BUUY179, VNB; elevation of 1,498 metres);
• 0.5 metres @ 26.3 g/t gold and 7 g/t silver (BUUY166, VNBC; elevation of 1,499 metres); and
• 2.4 metres @ 16.4 g/t gold and 12 g/t silver (BUUY197, VNE; elevation of 1,507 metres);
  

and, in the southern vein families:

• 14.5 metres @ 9.5 g/t gold and 9 g/t silver, including 3.05 metres @ 11.1 g/t gold and 15 g/t silver plus 1.0 metres @ 68.3 g/t gold and 17 g/t silver (BUUY203, MU2; elevation of 1,332 metres);
• 0.5 metres @ 18.9 g/t gold and 11 g/t silver (BUUY203, MU; elevation of 1,432 metres);
• 5.05 metres @ 48.1 g/t gold and 79 g/t silver, including 1.15 metres @ 203.6 g/t gold and 323 g/t silver (BUUY162, MU; elevation of 1,404 metres); and
• 2.5 metres @ 8.2 g/t gold and 3 g/t silver (BUUY195, MU; elevation of 1,427 metres).

Technical Information

Vic Wall, PhD, special advisor to the Company and a qualified person for the purpose of NI 43-101, has prepared or supervised the preparation of, or approved, as applicable, the technical information contained in this press release. Dr. Wall is a geologist with 35 years' experience in the minerals mining, consulting, exploration and research industries. Following a career in Australian and North American academes, he held senior positions in a number of multinational major and junior minerals companies. A Fellow of the Australian Institute of Geoscientists, Dr. Wall is Principal of Vic Wall & Associates, a Brisbane-based consultancy that provides geoscientific services to mineral companies and government agencies, worldwide.

The Company utilizes a rigorous, industry-standard QA/QC program. HQ core is sawn or split with one-half shipped to a sample preparation lab in Medellín run by ALS Colombia Limited ("ALS") in Colombia, whereas BQ core samples are full core. Samples are then shipped for analysis to an ALS-certified assay laboratory in Lima, Peru. The remainder of the core is stored in a secured storage facility for future assay verification. Blanks, duplicates and certified reference standards are inserted into the sample stream to monitor laboratory performance and a portion of the samples are periodically check assayed at ACME Analytical Laboratories in Vancouver, British Columbia and/or Inspectorate America Corp. in Reno, Nevada.

The Company does not receive assay results for drill-holes in sequential order; however, all significant assay results are publicly reported. A complete listing of assay results to date for the Buriticá project is available on the Company's website at www.continentalgold.com.

For additional technical information on the Buriticá project, please refer to the Company's technical report (the "Technical Report") entitled "2012 Mineral Resource Estimate of the Buriticá Gold Project, Colombia" dated November 15, 2012 with an effective date of October 22, 2012, prepared by Andrew J Vigar, BAppSc Geo, FAusIMM, MSEG, and Martin Recklies, BAppSC Geo, MAIG, each of Mining Associates Pty Limited, available on SEDAR at www.sedar.com, on the OTCQX at www.otcmarkets.com and on the Company website at www.continentalgold.com.

About Continental Gold

Continental Gold Ltd. is an advanced-stage exploration and development company with an extensive portfolio of 100%-owned gold projects in Colombia. Spearheaded by a team with over 40 years of exploration and mining experience in Colombia, the Company is focused on advancing its high-grade Buriticá gold project to production. On October 1, 2012, the Company announced an updated mineral resource estimate for the Buriticá project prepared in accordance with NI 43-101 which covers two major vein systems, with combined Measured and Indicated mineral resource of 3,740,000 tonnes of mineralized material containing 1,640,000 ounces of gold grading 13.6 g/t gold, 4,600,000 ounces of silver grading 38 g/t silver, and 55,800,000 pounds of zinc grading 0.7% zinc. The combined Inferred mineral resource is 13,330,000 tonnes of mineralized material containing 3,760,000 ounces of gold grading 8.8 g/t gold, 14,200,000 ounces of silver grading 33 g/t silver and 156,500,000 pounds of zinc grading 0.5% zinc.

In August 2012, Continental achieved an important milestone, receiving formal approval for the modification of its existing Environmental Impact Assessment. The amendment allows the Company to build a six-kilometre switchback road and begin underground development by constructing a one-kilometre access tunnel. With a goal of being the newest hard rock gold producer in Colombia, Continental has commenced the construction of the access tunnel, which will initially provide access for underground drilling and eventually used for commercial production. A Phase IV drill program is underway at the Buriticá project to further delineate the mineral resource and drill new target zones identified within its concessions.

Additional details on the Buriticá project and the rest of Continental's suite of gold exploration properties are available at www.continentalgold.com.

Forward-Looking Statements

This press release contains or refers to forward-looking information under Canadian securities legislation, including statements regarding the estimation of mineral resources, exploration results, potential mineralization, and exploration and mine development plans, and is based on current expectations that involve a number of business risks and uncertainties. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, failure to convert estimated mineral resources to reserves, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. Readers should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and the Company assumes no responsibility to update them or revise them to reflect new events or circumstances other than as required by law.

Differences in Reporting of Resource Estimates

This press release was prepared in accordance with Canadian standards, which differ in some respects from United States standards. In particular, and without limiting the generality of the foregoing, the terms "inferred mineral resources", "indicated mineral resources", "measured mineral resources" and "mineral resources" used or referenced in this press release are Canadian mining terms as defined in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves (the "CIM Standards"). The CIM Standards differ significantly from standards in the United States. While the terms "mineral resource", "measured mineral resources", "indicated mineral resources", and "inferred mineral resources" are recognized and required by Canadian regulations, they are not defined terms under standards in the United States. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities laws, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. Readers are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into reserves. Readers are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable. Disclosure of "contained ounces" in a resource is permitted disclosure under Canadian regulations; however, United States companies are only permitted to report mineralization that does not constitute "reserves" by standards in the United States as in place tonnage and grade without reference to unit measures. Accordingly, information regarding resources contained or referenced in this press release containing descriptions of our mineral deposits may not be comparable to similar information made public by United States companies.

To view Figure 1 accompanying this press release, please visit the following link: http://media3.marketwire.com/docs/918703a.pdf

To view Figure 2 accompanying this press release, please visit the following link: http://media3.marketwire.com/docs/918703b.pdf